What are the advantages of power factor correction?
Power factor correction doesn’t reduce power consumption if you consider the active power (KW). It does reduce the KVA input to a user which reduces the KVAR reactive power. If you are a big user with a 1500 KVA transformer rated at .8 power factor and your actual KW load is 1200 KW, this is maximum KW you can operate and still stay within the 1500 KVA rating of the transformer. However if you correct your power factor to 0.95, you can run 1425 KW and still stay within the rating of your 1500 KVA transformer. Power factor capacitors will store and release kvar power (for magnetizing motors, etc) which will circulate entirely within the capacitor and magnetic users on your system. The KVAR power is not registered on the billing watthourmeter, The current simply circulates in the system. However, the power company will love you because it reduces the line loss in their system and the can serve more customers with the same Equipment.
